Who Wins 80% Off Rentals – What Applies To Owners And …



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By Prokopis Hatzinikolaou

The rent reduced by 80% will be paid by all companies that are closed during the festive period, in the months of January and February 2021, as announced by Prime Minister K. Mitsotakis. The owners will be compensated by the state at 60% on the monthly rent and not on the losses as before, while the amount that will be credited to their account will be tax-free and not guaranteed.

On the side of employees who work in the aforementioned companies and are in suspension, the discount will remain at current levels and specifically at 40%.

The government’s goal is to stimulate companies facing survival issues and avoid a massive shutdown next year.

What will be applied to rentals from January

– Monthly rent is reduced by 80% for all businesses that close during the holiday season for the months of January and February. Catering, retail, nightclubs, bars, cafes, gyms and culture will pay low rent.

– The state pays 60% of the monthly rent to the owners. Until now, the state covered a percentage of the loss and not the rent. The amount will be credited to the accounts and will be tax-free and unsecured. Landlords will lose substantially 20% of their monthly rent during the first two months of the year.

– Employees who work in those companies that are closed by state order will continue, as everything shows, having the same discount that applies today, that is, 40% of the monthly income.

– The measure concerns more than 200,000 companies, while it also includes stores that have been operating since the beginning of the week with the Click away method.

Examples

– Commercial leases of real estate for 1,000 euros per month. For January and February you will pay rent reduced by 80%. The amount you will pay to the owner will rise to 200 euros in January and the same amount in February.

– Restaurant rents a property with a monthly rent of 3,000 euros. The rent will be reduced to 600 euros in January and an additional 600 euros in February.

– The owner rents a property for 2,000 euros per month. You will receive the amount of 400 euros from the tenant in January, while you will receive 1,200 euros as compensation from the State. You will receive a total of 1,600 euros, losing 20% ​​of the rent.

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